The RMB Is Now an Officially Approved IMF Currency

In a landmark decision, the International Monetary Fund yesterday approved the renminbi as one of the world's main currencies.

The approval did not come easy for China, which was forced to give up its notoriously tight control over currency in order to meet the IMF's approval requirements. This resulted in the sudden devaluation of the yuan over the summer.

Just four other currencies share the elite designation: the dollar, the euro, the pound and the yen. By adding the renminbi to this group of elites, the IMF is essentially saying that it considers the currency to be "safe, reliable and freely usable," according to the New York Times.

The label will officially go into effect in October of next year.

[Image via Flickr]

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